Waratah Coal has welcomed the Federal Government's environmental approval of what could become Australia's biggest coal mine, despite the imposition of 49 conditions to ensure protection of sensitive wilderness.

Key points: Waratah Mine project

Will produce 40 million tonnes of coal every year

Involves building a 450-kilometre railway line to Abbott Point terminal

Waratah Coal says the $6 billion project will create about 6,000 jobs

Due to start operating in three years

Part of the 8,000-hectare Bimblebox Nature Refuge will be destroyed to make way for the mine

The company, owned by federal MP Clive Palmer, says the operation in Queensland's Galilee Basin will produce 40 million tonnes of coal for export every year.

The $6.4 billion project involves the construction of a 450-kilometre railway line, linking the thermal coal mine to a controversial terminal proposed for Abbot Point near Bowen.

Environmentalists have been angered by the approval, fearing the mine and its rail link will threaten endangered bird species and a local nature reserve.

But the company's managing director Nui Harris has told the ABC's AM program the so-called China First mine would be an asset to the area by creating thousands of jobs.

"The reality is the project will create jobs to a total of about 6,000 jobs all up - being the mine, the rail and the port," Mr Harris said.

"It won't be taking jobs away from the rural community. It will be adding jobs to the rural community."

Mr Harris said following the federal approval, the project will go ahead and be operating within three years.

Mr Harris sought to play down the role of the company's owner and executive chairman, Mr Palmer, who is also the MP for the Sunshine Coast-based seat of Fairfax and whose political party is set to wield significant clout in the Senate from next year.

"What they've approved is a project which is put forward by Waratah Coal and Waratah Coal being a subsidiary of Mineralogy."

Environmental fears over Bimblebox Refuge, Great Barrier Reef

Environmentalists have raised concerns about the Galilee project, saying part of the 8,000-hectare Bimblebox Nature Refuge would be destroyed by the development.

Approvals for the project include offsets for the loss of part of the refuge, which is used for bird migration research.

The Australian Greens also say the Waratah Coal project is one of two major mining projects approved in Queensland which will devastate the Great Barrier Reef, underground water supplies and the environment.